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The Collaborative International Dictionary
Diversification

Diversification \Di*ver`si*fi*ca"tion\, n. [See Diversify.]

  1. The act of making various, or of changing form or quality.
    --Boyle.

  2. State of diversity or variation; variegation; modification; change; alternation.

    Infinite diversifications of tints may be produced.
    --Adventurer.

Douglas Harper's Etymology Dictionary
diversification

c.1600, noun of action from Medieval Latin diversificare (see diversify). Economic sense is from 1939.

Wiktionary
diversification

n. 1 The act, or the result, of diversifying. 2 A corporate strategy in which a company acquires or establishes a business other than that of its current product.

WordNet
diversification
  1. n. the act of introducing variety (especially in investments or in the variety of goods and services offered); "my broker recommended a greater diversification of my investments"; "he limited his losses by diversification of his product line" [syn: variegation]

  2. the condition of being varied; "that restaurant's menu lacks diversification; every day it is the same"

Wikipedia
Diversification

Diversification may refer to:

  • Diversification (biology) emergence of subpopulations that have accumulated independent genetic changes
  • Diversification (finance) involves spreading investments
  • Diversification (marketing strategy) is a corporate strategy to increase market penetration
  • Agricultural diversification involves the re-allocation of some of a farm's resources to new products or non-agricultural activities
  • Diversified technique, a chiropractic method
  • Diversification of firms through mergers and acquisitions
Diversification (finance)

In finance, diversification is the process of allocating capital in a way that reduces the exposure to any one particular asset or risk. A common path towards diversification is to reduce risk or volatility by investing in a variety of assets. If asset prices do not change in perfect synchrony, a diversified portfolio will have less variance than the weighted average variance of its constituent assets, and often less volatility than the least volatile of its constituents.

Diversification is one of two general techniques for reducing investment risk. The other is hedging.

Diversification (marketing strategy)

Diversification is a corporate strategy to enter into a new market or industry which the business is not currently in, whilst also creating a new product for that new market. This is most risky section of the Ansoff Matrix, as the business has no experience in the new market and does not know if the product is going to be successful.

Diversification is part of the four main growth strategies defined by Igor Ansoff's Product/Market matrix:

Ansoff pointed out that a diversification strategy stands apart from the other three strategies. The first three strategies are usually pursued with the same technical, financial, and merchandising resources used for the original product line, whereas diversification usually requires a company to acquire new skills, new techniques and new facilities.

Note: The notion of diversification depends on the subjective interpretation of “new” market and “new” product, which should reflect the perceptions of customers rather than managers. Indeed, products tend to create or stimulate new markets; new markets promote product innovation.

Product diversification involves addition of new products to existing products either being manufactured or being marketed. Expansion of the existing product line with related products is one such method adopted by many businesses. Adding tooth brushes to tooth paste or tooth powders or mouthwash under the same brand or under different brands aimed at different segments is one way of diversification. These are either brand extensions or product extensions to increase the volume of sales and the number of customers.

Usage examples of "diversification".

I think, at least safely infer that diversification of structure, amounting to new generic differences, would have been profitable to them.

The same sort of diversification according to habitat preferences seems to have been the fate of the horned dinosaurs, a group characterized by such features as huge heads and pointed rostral bones or beaks.

The advantage of diversification in the inhabitants of the same region is, in fact, the same as that of the physiological division of labour in the organs of the same individual body--a subject so well elucidated by Milne Edwards.

And the Fecundity (Plenitude) of Nature has one law, he maintains: progressive diversification (what we would call progressive complexification or differentiation).

As we saw in Chapter 2, though, Polynesian political and social organization and economies underwent great diversification in different environments.

This internal differentiation [tenet I2b in interiors] was the natural basis for a cultural diversification evidenced in a multiplicity of social learning processes.

We think it was because the seas of the world were empty of multi-cellular life, so there was for a time completely free diversification.

While educators are rapidly multiplying the number of alternative paths, the pace of diversification is by no means swift enough for the students.

Ancestral cabbage plants, possibly grown originally for their oily seeds, underwent even greater diversification as they became variously selected for leaves (modern cabbage and kale), stems (kohlrabi), buds (brussels sprouts), or flower shoots (cauliflower and broccoli).